Strong Tie Ltd 2 Case Study Solution and Analysis
Intro
Strong Tie Ltd 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing information and interaction services. Major company sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Strong Tie Ltd 2 Case Study Help has actually become a specialized details provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Strong Tie Ltd 2 Case Study Help in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strong Tie Ltd 2 Case Study Help has particular strengths that can be used to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Strong Tie Ltd 2 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the company to think about several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Strong Tie Ltd 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Strong Tie Ltd 2 Case Study Solution too, however the growth could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned specific threats to Strong Tie Ltd 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Strong Tie Ltd 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual total revenues of Strong Tie Ltd 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in drawing in a big number of clients at a potential rate.
Together with it, the second chart which shows the annual development in the Strong Tie Ltd 2 Case Study Help overall possessions, reveals that the company is quite effective in adding value to its assets through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis relating to the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces impacting Strong Tie Ltd 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Strong Tie Ltd 2 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Strong Tie Ltd 2 Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the digital libraries on specific websites. The altering customer choices towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Strong Tie Ltd 2 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Strong Tie Ltd 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a major focus on academic publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Strong Tie Ltd 2 Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing market growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must first collects the data related to the consumer demand, the possible markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
